Crypto is going to transform commerce as we know it. Frictionless, trustless payments, settled instantly, across borders – that’s just scraping the surface.
But it’s also going to open an entirely new competitive “front” for the American economy, and boost crypto portfolios, too.
That’s because, as it stands now, one of America’s most powerful symbols of economic status is also a major weakness. It’s a weakness crypto can eliminate, creating a stronger economy and higher crypto prices.
The “almighty dollar” is the world’s reserve currency. Everyone wants it. Most of them use it. The dollar is used for international trade all over the world. That’s kind of the point of having currency in the first place, so two people who want to make a deal can be sure that they’ll each have something the other wants: money. It saves sellers the hassle of having to track down a specific buyer who has a means of payment that they specifically want.
I mean, it’s Econ 101: If you want to sell a bicycle, and buy a thousand eggs, you don’t want to waste time searching for that special someone who’s A) holding a thousand eggs and B)jonesing for a bicycle. If you want to sell a car or a house, there may even be no one specific good or service you want as payment, making collecting without using money preposterous.
Now, scale this problem up to a global scale – massive shiploads of grain, oil, smartphones, televisions, rubber duckies. That makes it easy to understand why most international trade is transacted in U.S. dollars.
That seems great for America, and in some ways, it is. But it’s not all gravy – the situation also poses a major problem that actually holds our economy back, and stifles economic opportunity for people.
Here comes crypto to solve the problem, like so…
Global Money Mechanics Are the Problem
Since people always want dollars to do business globally, America has an easier time paying for imported goods.
But there’s that drag, Econ 101 again; if everyone wants American dollars, they cost more. That makes it more expensive to actually buy American, and cheaper to outsource jobs overseas. This reality has been hollowing out our manufacturing base, and our society, for decades now.
Crypto solves this problem.
Fully electronic currencies, which are being developed both privately and under government direction, won’t need to go through this same process. They can just convert one to another without going through dollars.
That means fewer dollars tied up sa worldwide exchange medium. Instead, dollar holders all around the world will be free to use that money to buy goods and services from America. American goods will become cheaper and more competitive all around the world. Americans get to do more business and lose the economic weight that makes them less competitive.
This will be great for the entire world too. People everywhere have to chase dollars to do any kind of business…
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